Wednesday 21 December 2016

Comex Gold Futures (GC) Technical Analysis – December 22, 2016 Forecast

The weaker U.S. Dollar is helping to underpin February Comex Gold futures on Wednesday. Low volume is helping to keep down the volatility, however. This makes the market susceptible to volatility spikes. Gains may be limited by rising equity prices and Treasury yields.
The sideways trade the last four days suggests investor indecision and impending volatility. Today is also a major cycle day for gold that is often accompanied by strong upside action.

Technical Analysis

The main trend is down according to the daily swing chart. The trend will turn up on a trade through the last main top at $1190.20. A trade through $1124.30 will signal a resumption of the downtrend.
The short-term range is $1146.00 to $1124.30. Its 50% level or pivot at $1135.20 is controlling the short-term direction of the market. Gold is straddling this price today.
The main range is $1190.20 to $1124.30. If there is a breakout to the upside then $1157.30 will become the primary upside target.

Forecast

Based on the current price at $1136.60, the direction of the gold market today will be determined by trader reaction to the short-term pivot at $1135.20.
A sustained move over $1135.20 will signal the presence of buyers. This could fuel a quick rally into a pair of downtrending angles at $1140.10 and $1142.20.
The angle at $1142.20 is the trigger point for an acceleration to the upside with $1157.30 the next major upside target.
A sustained move under $1135.20 will indicate the presence of sellers. The next target is last week’s low at $1124.30, followed by a long-term uptrending angle at $1118.70
Watch the price action and read the order flow at $1135.20 today. Trader reaction to this level will tell us if the buying is getting stronger, or if the sellers are still in control.

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